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CAVU Resources, Inc. Announces New Technology and Systems Upgrades on the Chisholm Lease
CAVU Resources, Inc. (PINKSHEETS: CAVR), announced today that the company has completed the upgrades to the operating equipment, material handling and remote systems controls on the Chisholm lease production and disposal systems. The company recently restarted only two of the existing 8 wells and production has averaged flow rates of 44 barrels a day of oil (BOPD).
The upgrades included rebuilding the current submersible pump with cathode and electrolysis protection and sensors that allow continuous monitoring of all down hole activities. Filter and chemical treatment systems were also installed. The upgraded technology will reduce long term operating cost and equipment replacement by chemically protecting the operating systems and enhancing the oil flow for the four existing wells and the planned rework and drilling of 7 additional wells.
CAVU re-engineered the existing disposal system and added computer controlled injection pumps and multiple chemical additive systems to increase the flow rate and reduce down hole pressures. The upgraded system can now handle up to 10,000 barrels a day of treated saltwater. The current permit only allows for 3,000 barrels a day of production restricting further production. To allow for increased production and create additional revenue streams the company's subsidiary CAVU Energy Systems, Inc. has permitted a 50,000 barrel a day disposal well and plans on completing the first phase of its development by the end of April 2012.
"With these recent upgrades the day to day operations are virtually maintenance free with all field operation monitored from CAVU computer and camera systems on the Chisholm lease. The steadily increasing flow rates and increased disposal capacity show the Chisholm lease is only producing a small percentage of the available oil in the area. We are very happy with the results and look forward to using this technology on and of our leases that have the economics to support the system. CAVU has invested over $1.5 in the Chisholm lease and owns all of the improvements and has developed an integration of off the shelf technology that works great together," said William C. Robinson, President of CAVU Resources, Inc.
